Question

Use the following table to answer this question:

Present value of an annuity of 1

Period 8% 9% 10%

1 .926 .917 .909

2 1.783 1.759 1.736

3 2.577 2.531 2.487

A company has a minimum required rate of return of
9%. It is considering investing in a project that cost
$420,000 and is expected to generate cash inflows of $168,000 at
the end of each year for 3 years. Calculate the net
present value of the
project.